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Trading sports online may be a very profitable pastime and as more and more people get involved that implies just one thing... liquidity. With the invention of the betting exchange and the rise and rise of the main one, Betfair, there is increasingly more money being traded on professional sports.
From horse racing to tennis and football to greyhound racing there are various markets available and focus on. There are even markets for financials and politics.
In-play betting and the capability to place "lay" bets have revolutionized our ability to profit from these markets (for all those not in the know a lay bet is betting that an event will not occur ie a horse will not win a race). Just watch any in-play tennis match and see how the odds move. Making feeling of these patterns and developing successful strategies to make regular profit will be the holy grail for lots of people.
The basic theory behind all this really is that you need to back at an increased price than you lay. It really is the exact same as business all around the world, you buy a product at one price and you sell it at another, the main difference between the two being your net profit.
An example is I back a horse at 2/1 for Ł100. That's 3.00 in decimal odds. If it wins I win Ł200 and obtain My Home Page stake back. Before the start of the race the odds come down to 6/4 or 2.50. I then lay it for Ł100 and if the horse wins I have to pay out Ł150. The main difference between my back winnings and my lay liability is Ł50. Which is what I would win if this horse wins and if it will not, I lose nothing! A free bet. The really neat trick is to "hedge" your winnings out so you win the exact same amount no matter what horse wins. In the above example I could lay the horse for Ł120 guaranteeing me a Ł20 profit.
The most obvious problem is exactly what happens if the odds rise? You're left with a bet you can't sell or get rid of without losing at least several of your stake. This is where the difference between traders and gamblers comes in. A gambler takes risks in order to possibly achieve a profit. A trader is happy to take a series of small losses safe in the knowledge that the wins will outweigh the losses.
There are lots of and varied approaches to trading although the most important thing is discipline. As soon as you fail to close a trade which has gone against you you are no longer trading but gambling. Sure, you could get away with it but when it goes wrong you will definitely lose a great deal more than you bargained for. The top way to focus your brain and stop the gambling tendency arising is to work to strict strategies with defined entry and exit points.
From horse racing to tennis and football to greyhound racing there are various markets available and focus on. There are even markets for financials and politics.
In-play betting and the capability to place "lay" bets have revolutionized our ability to profit from these markets (for all those not in the know a lay bet is betting that an event will not occur ie a horse will not win a race). Just watch any in-play tennis match and see how the odds move. Making feeling of these patterns and developing successful strategies to make regular profit will be the holy grail for lots of people.
The basic theory behind all this really is that you need to back at an increased price than you lay. It really is the exact same as business all around the world, you buy a product at one price and you sell it at another, the main difference between the two being your net profit.
An example is I back a horse at 2/1 for Ł100. That's 3.00 in decimal odds. If it wins I win Ł200 and obtain My Home Page stake back. Before the start of the race the odds come down to 6/4 or 2.50. I then lay it for Ł100 and if the horse wins I have to pay out Ł150. The main difference between my back winnings and my lay liability is Ł50. Which is what I would win if this horse wins and if it will not, I lose nothing! A free bet. The really neat trick is to "hedge" your winnings out so you win the exact same amount no matter what horse wins. In the above example I could lay the horse for Ł120 guaranteeing me a Ł20 profit.
The most obvious problem is exactly what happens if the odds rise? You're left with a bet you can't sell or get rid of without losing at least several of your stake. This is where the difference between traders and gamblers comes in. A gambler takes risks in order to possibly achieve a profit. A trader is happy to take a series of small losses safe in the knowledge that the wins will outweigh the losses.
There are lots of and varied approaches to trading although the most important thing is discipline. As soon as you fail to close a trade which has gone against you you are no longer trading but gambling. Sure, you could get away with it but when it goes wrong you will definitely lose a great deal more than you bargained for. The top way to focus your brain and stop the gambling tendency arising is to work to strict strategies with defined entry and exit points.
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